QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 31 MARCH 2012 KEY POINTS Sabre has identified three significant mineralised Base Metal Trends within its Ongava Polymetallic project in northern Namibia the Lucas Post Trend, the Pavian Trend, and the Hoek Trend. Work is focussing on defining resources and moving towards development on each of these Trends. The results of the current work programme include: Lucas Post Trend (Cu-Pb-V) Further sampling at Kaskara defined more high-grade mineralisation from historic workings, including: KKUG 0023 21 m @ 2.00% V 2 O 5, 4.79% Pb, 1.75% Zn & 0.21% Cu (4.56% CuEQ) Resource drilling scheduled to commence at Kaskara in May 2012. Pavian Trend (Zn-Pb-Ag) Drilling on the South Ridge prospect to commence in May 2012, previous trench sampling returned high-grade results including: SRCS002 23 metres @ 7.61% Zn+Pb & 32.24 gpt Ag The Border Scoping Study shows low strip ratios, low mining and processing costs and simple metallurgy. Hoek Trend (Zn-Pb-Ag) Resource drilling of the Driehoek deposits scheduled to commence in May 2012. Explore Extend Extract
INTRODUCTION Sabre s focus is the exploration and development of the Ongava Polymetallic Project, located in the world-class Otavi Mountain Land (OML) metallogenic province in northern Namibia. The OML has a long mining history dating back to the late 1800s and consequently has excellent infrastructure, including roads, power, water, rail to port and is home to the Tsumeb base metal smelter. The province, historically a globally important source of copper, lead, zinc and vanadium, is presently undergoing a renaissance due to exploration by Sabre (and others) in the region. Border (Zn-Pb-Ag) Inferred JORC 16.2 Mt @ 2.12% Zn+Pb & 4.8 gpt Ag Low strip ratios, with low mining & processing costs. South Ridge (Zn-Pb-Ag) Exploration Target Trenching incl 23m @ 7.6% Zn+Pb & 32 gpt Ag Nosib H (Zn-Pb-Ag) Exploration Target Trenching and Sampling In Progress Harasib II (Zn-Pb-Ag) Exploration Target Trenching incl 22m @ 21.2% Zn+Pb & 37 gpt Ag Kaskara (Cu-Pb-V) Exploration Target Drill Results incl 22m @ 1.8% V2O5, 4.2% Pb & 0.3% Cu (4.8% CuEQ) Driehoek (Zn-Pb-Ag) Exploration Target 5-7 Mt @ 3-5% Zn+Pb & 8-16 gpt Ag* Figure 1 Sabre has identified three significant base metal trends within its Ongava project area; the Pavian, Lucas Post & Hoek Trends, each hosting significant base metal mineralisation. Sabre s development programme will focus on three significant base metal trends identified by the company within the Ongava Project area (see Figure 1). These trends are, from north to south: * The potential quantity and grade of the Driehoek zinc-lead deposit is conceptual in nature, as Sabre has determined that insufficient work has been undertaken to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. The exploration target size was based upon deposit calculations undertaken by Goldfields Namibia Ltd. the Pavian Zinc-Lead Trend; the Lucas Post Copper Trend; and the Hoek Zinc-Lead Trend. These three base metal trends each cover more than 20 kilometres of strike and host significant mineralisation in their own right, ranging from geochemical anomalies to defined JORC resources. Sabre is gearing up for a progressive 2012 in the OML, following an intense wet season that has delayed the company s drilling programme. Drill sites have now been prepared at a number of prospects and drilling will commence shortly at the Kaskara copper-vanadium-silver prospect, the South Ridge zinc-lead-silver prospect, and at the Driehoek zinc-lead-silver deposits. 2
1. LUCAS POST COPPER TREND (Cu-Pb-V) Sabre s primary exploration focus is the Lucas Post Copper Trend, in particular the Kaskara prospect. The Lucas Post Trend is a regional scale fault structure more than 25 kilometres long, which hosts a number of historic mine workings and prospects, including Tigerschlught, Ondjima, Uitsab and Sabre s discovery at Kaskara. Heavy seasonal rains restricted field work during the quarter, with access roads along the Lucas Post Trend being impassable. However, recently upgraded tracks into the Kaskara prospect have enabled limited access, with further mapping and sampling of the mine workings having been undertaken. Elsewhere along the Lucas Post Trend geological mapping and soil sampling furthered Sabre s regional reconnaissance programme, including the mapping and geochemical sampling of the Uitsab prospect. A summary of the Kaskara work programme is provided below: 1.1 Kaskara sampling Outcropping oxide mineralisation occurs in gossans throughout the Kaskara mineralised prospect, covering over a kilometre of strike. The mineralisation in the Harasib III pit (not to be confused with the Harasib II prospect) is located adjacent to this corridor but coincides with the southern edge of the extensive IP anomaly below Kaskara (Figure 2). Channel sampling of mineralisation at the base of the Harasib III pit adjacent to the recognised Kaskara prospect has returned high-grade assays, including: KKUG0023 KKUG0024 21 m @ 2.00% V 2 O 5, 4.79% Pb, 1.75% Zn & 0.21% Cu (4.56% CuEQ) 4 m @ 3.69% V 2 O 5, 8.71% Pb, 2.80% Zn & 0.47% Cu (8.37% CuEQ) These results show that the eastern vertical wall of the Harasib III pit is highly mineralised through to the base of the workings, more than 18 metres below surface. The pit is located around 200 metres southwest of the previously recognised Kaskara mineralised corridor. Oxide mineralisation at surface shows a complex relationship to the underlying IP anomaly, lying both over the anomaly and around the northern side of it. However, it is clear that the poorly exposed western flank of the Kaskara hill is now a further target for oxide V-Pb-Zn-Cu mineralisation associated with the IP anomaly at depth (Figure 2). 1.2 Kaskara exploration target The target at Kaskara (Figure 3) is a copper-lead-zinc sulphide deposit at depth, overlain and supplemented by significant non-sulphide V-Pb-Zn-Cu deposits at and near surface. The massive V-Pb-Zn-Cu mineralisation encountered at surface, in drilling and in underground sampling, is weathered secondary mineralisation. Typically this style of mineralisation occurs above fresh primary sulphide mineralisation, at other deposits in the region, such as Tsumeb. Geophysical (IP) anomalies identified below this secondary mineralisation are likely to represent the topmost portion of sulphide mineralisation at Kaskara. 3
Underground sampling New V-Pb-Zn-Cu target area (at surface) IP anomaly (at depth) New sampling Harasib III pit Figure 2 Location of mine workings and surface mineralisation at Kaskara. The new sampling reported here is approximately 200 m southwest of the previous high-grade results from the historic underground workings. It coincides with the extensive IP anomaly (purple) which is located around 200 m beneath surface. Kaskara shows a number of features characteristics of the major base metal deposits of the region, including the exceptional Tsumeb mine 40 kilometres to the north of the prospect. These features include: Outcropping, high-grade base metal mineralisation; Outcropping disseminated sulphide mineralisation; A broad, strong soil geochemical anomaly; Location on a deviation in a major fault system; Geophysical anomalies at depth; Deep penetrative weathering in a region of otherwise shallow weathering (Figure 3); and Secondary copper-lead-zinc vanadate minerals indicative of primary copper-lead-zinc sulphide mineralisation at depth. 4
Kaskara represents an outstanding opportunity for Sabre, showing all of the hallmarks of a major polymetallic deposit. Approx. location of workings 1.3 Resource drilling at Kaskara Figure 3 Diagrammatic section showing the expected relationships between the secondary mineralisation (sampled here) and the expected primary mineralisation at depth. In May 2012, a track-mounted RC drill rig will be mobilised to Kaskara. Construction work is underway on additional drill pads and to upgrade access to the site. The RC rig will undertake an extensive programme of around 30 drill holes, aimed at defining a JORC resource in the oxidised V-Pb-Zn-Cu deposits. The programme will also target primary sulphide mineralisation at depth. 2. PAVIAN ZINC-LEAD TREND (Zn-Pb-Ag) The Pavian Trend is a provincial-scale structure covering more than thirty kilometres of strike within Sabre s Ongava tenement area. The trend hosts a number of recognised lead-zinc-silver prospects and deposits, including Sabre s substantial JORC resource at Border: 16.2 Million Tonnes @ 2.12% Zn+Pb & 4.76 gpt Ag* *at a 1.25% Zn+Pb cut-off A number of other prospects have been identified along the Trend including Irvington, Toggenberg, Nosib H and South Ridge. These prospects all show similar outcropping sulphide mineralisation and geochemical characteristics and will be systematically tested as a part of the ongoing drilling campaign to build the resource inventory for the Pavian Trend. 2.1 Pavian Trend scoping study A high-level scoping study has been completed over the Border deposit on the Pavian Trend. The study developed the following key findings: Border shows broad zones of Zn-Pb mineralisation (up to 85 metres thick), 5
Modelling shows strip ratios are potentially less than 2:1 (waste to ore), Metallurgical testing at AMMTEC shows that simple coarse crushing (12.5 mm) and DMS treatment of the feed produces a rough concentrate at 18.8% Zn+Pb with metal recoveries in excess of 85%, A coarse grind and floatation circuit produces concentrates at over 65% Pb and 61% Zn with overall metal recoveries in excess of 80%, Direct mining and processing costs are estimated to be approximately US$16/ tonne of ore. The key findings of the study will be applied, as appropriate, to other deposits on the Pavian Trend as they are converted to resources and the findings will then form the basis of the developing Feasibility Study for the deposits of the Pavian Trend. 2.2 Drilling at South Ridge (Zn-Pb-Ag) Reverse circulation (RC) drilling will commence in the second quarter of 2012 at South Ridge, 6 km east of and along strike from the Border deposit. Initial studies suggest that South Ridge is a look-alike of Border zinc-lead-silver deposit, but with substantially higher grade at surface. Recent channel sampling results included: SRCS002 23 metres @ 7.61% Zn+Pb & 32.24 gpt Ag Access to South Ridge has been constructed, and an initial programme of up to 12 drill holes has been designed. This programme aims to confirm key attributes of the zinc-lead-silver mineralisation, particularly its orientation and mineralogy, in preparation for a more extensive drilling programme later in the year for the estimation of a JORC resource. Resource drilling will be extended to other prospects along the Pavian Trend, such as Nosib H & Irvington, as results are received from additional sampling programmes. 3. HOEK ZINC-LEAD TREND (Zn-Pb-Ag) The Hoek Trend covers over 20 kilometres of strike in the southern Ongava tenement area, from Driehoek in the west through to Hoba Ost in the east. Exploration is still at an early stage on this trend, however previous drilling has already outlined an exploration target at Driehoek: 5 7 Million Tonnes @ 3-5% Zn+Pb & 8-16 gpt Ag* * The potential quantity and grade of the Driehoek zinc-lead deposit is conceptual in nature, as Sabre has determined that insufficient work has been undertaken to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. The exploration target size was based upon deposit calculations undertaken by Goldfields Namibia Ltd. 3.1 Drilling at Driehoek (Zn-Pb-Ag) Resource drilling is scheduled to commence at Driehoek in May 2012, with the aim of validating the existing data for the deposit and allowing the estimation of a JORC resource. A man-portable diamond drilling rig will provide drill core from the high ground covering Driehoek Central and parts of Driehoek North; an initially programme of 15 holes is planned. Sabre Resources looks forward to updating shareholders as the exploration programme in the Otavi Mountain Land continues. 6
For further information please contact: Dr Matthew Painter, General Manager - Exploration Phone (08) 9481 7833 Or consult our website: http://www.sabresources.com/ Competent Persons Declarations The information in this report that relates to Exploration Results is based on information compiled by Dr Matthew Painter of Sabre Resources Ltd, who is a member of The Australian Institute of Geoscientists. Dr Painter has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves. Dr Painter consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resources or Ore Reserves is based on information compiled by Luke Marshall of Kalgoorlie Mine Management, who is a member of The Australian Institute of Geoscientists. Mr Marshall has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves. Mr Marshall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Forward-Looking Statements This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Sabre Resources Ltd s planned exploration programme and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may, "potential," "should," and similar expressions are forward-looking statements. Although Sabre Resources Ltd believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. 7